Page 30 - IRANRptJul18

Iran introduces ban on banks dealing with cryptocurrencies
business officials in Tbilisi. It was part of a wider business trip arranged by the Iran-Georgia Friendship Group, a business lobby aimed at facilitating trade between the two near neighbours. But the recent banking difficulties experienced by Iranians in Georgia may indicate that a spanner is going to get firmly lodged in the wheels of any potential deal.
Reports have previously stated that Iran was on the way to connecting its banking system with those of other countries including Russia, Azerbaijan, Oman and Qatar, but delays and supposed "technology issues" have hampered any further development of banking integration with those neighbours.
In the case of Russia, it was first announced that the connection would be achieved by January this year. Then it was suggested that it would occur by the time of the June start of the Russia 2018 World Cup. But Iranian football fans who have journeyed to Russia for the tournament have told media outlets that their bank cards fail to work in the country’s ATMs.
According to several Iranian residents of Georgia, all Iranians in the country, bar those working for foreign media, are only permitted to open Georgian lari accounts. Also, the account holders are not permitted to conduct international banking transactions in other foreign currencies as that might breach US Treasury banking regulations and sanctions.
In May, Georgian lender TBC Bank clarified its restrictions on Iranians conducting business in Georgia, including several new rules on residency requirements.
Iran’s central bank has banned Iranian banks from dealing in cryptocurrencies, including Bitcoin, over money-laundering concerns, state news agency IRNA reported on April 23. The country is in the midst of moves aimed at halting its currency crisis caused by steep devaluation of the Iranian rial (IRR) partly on concerns regarding Iran’s economic future given hostility from Washington.
“Banks and credit institutions and currency exchanges should refrain from any sale or purchase of these currencies or taking any action to promote them,” IRNA reported, quoting a central bank circular.
Iran in early April formally unified its official and open market exchange rates and banned money changing outside of banks. The move initially almost wiped out the black market but there are signs that it is returning as Iranians grow frustrated by the search for dollars at the official unified rate.
8.1.7 Bank news
Iran’s Bank Saderat connected to Europe’s TARGET2
Bank Saderat Iran (BSI), one of Iran’s biggest banks with operations abroad, has been connected to Europe’s TARGET2 settlement system, IBENA reported on June 18.
In an interview with the banking news agency, Saderat CEO Hojjatollah Seyyedi said that the system went operational in recent days and that the settlements “have been successful.”
TARGET2, the Trans-European Automated Real-time Gross Settlement Express Transfer System, is the real-time gross settlement system for the
30 IRAN Country Report July 2018 www.intellinews.com